Suzuki 2005 Annual Report Download - page 17

SUZUKI MOTOR CORPORATION
The business environment surrounding the Company is extremely unclear due to the fluctuation of exchange
rates and the increase in competition among companies. Considering these circumstances, the business
environments surrounding the Company has become increasingly tougher.
In order to cope in such difficult circumstances, we are striving to pursue the following motto which represents
our basic policy: "In order to survive, let us stop acting in a self-styled manner and get back to basics". We intend
to make positive efforts to strengthen our management structure by reviewing our practices in every area of our
business.
In our motorcycle operations for the domestic market, we will promote sales increases of our motor driven
cycles as well as drive sales of our large-size models. In overseas markets, we will try to boost sales of small-size
models in Asia, and large-size models in the European and North American markets. In this way, we intend to
establish a highly profitable motorcycle business operation.
In our automobile business, we intend to increase sales of small, subcompact and standard-sized vehicles in
the domestic market by upgrading the sales power of "Suzuki Arena"(our sales channel for small and subcompact
vehicles), along with enhancing and improving our existing sales network, and by focusing on strengthening our
understanding of the market and improving customer satisfaction. In overseas markets, in the marketing and
product development stages, we will maintain closer contact with the market. Our overseas plants will be
upgraded, further developing automation to facilitate improvements in quality and productivity, as well as finding
innovative solutions for cost reduction and the promotion of local procurement of parts. Furthermore, we hope to
maximize the business potential of the synergies gained by our strategic alliances with the General Motors Group
to reinforce the corporate foundation. Efforts will be taken to develop products in a speedy and effective manner
that closely meet demands in each of the four major market regions in the world and to introduce them in a timely
fashion.
We are also continuing to further our environmentally friendly technology. Improvements are being sought for a
wide range of global issues such as minimizing the environmental impact during the product development
process, reducing gas emissions, improving fuel consumption, reducing the amount of resources consumed and
recycling. Development programs for advanced next-generation vehicles, such as fuel-cell vehicles, are also
being carried out.
The Company has made positive efforts towards the implementation of various measures aimed at ensuring our
corporate activities are carried out in a fair and efficient manner. We are confident our business organization has
the desire to always retain the faith of our shareholders, customers, business partners, and all members of our
regional communities.
To highlight the importance of corporate ethics, we have adopted various measures, including establishing a
set of guidelines for directors and employees of the Company. The "Suzuki Corporate Ethics Rules", lay out a set of
basic points to enable each staff member to act in a fair and faithful manner so to conform to the laws, the norms
of the society and company regulations. A set of "Action Standards" has also been clarified in these rules. In
addition, a "Corporate Ethics Committee" has been established for the promotion of overall corporate ethics. We
have also established a "Corporate Ethics Promotion Headquarters" as its subordinate organization for the
promotion of the corporate ethics in each division. The "Suzuki Corporate Ethics Rules" are now accessible on the
corporate intranet for directors and employees, so they can be referred to at any time. Lecture sessions are being
held to ensure that the employees realize the importance and necessity of the corporate ethics.
(a)Corporate auditing, management supervision and the structure of internal control system
In the case of directors, their management responsibilities are clarified, and the term of their office is to be
the period of one year in order to flexibly address the change in the business environment.
Besides the regular board of directors meetings held every month, special board of directors meetings are
held whenever necessary and corporate auditors always participate in board of directors meetings.
Discussions in the board of directors meeting are thoroughly conducted and the corporate auditors' function of
management supervision is working effectively.
The Company has also adopted a corporate auditor system. Corporate auditors are responsible for the
auditing of the proper implementation of management of the Company.
(b)Internal auditing and corporate auditors' auditing
The Company has audit functions for our domestic and overseas subsidiaries and affiliates, in addition to the
internal audit group. Thus, along with an audit by corporate auditors and an audit by independent public
(2) Corporate auditing, management supervision and the structure of internal control system
(1) Basic concepts regarding corporate governance
6. Corporate governance issues
5. Outstanding issues
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